At noon on March 21, Huahong semiconductor, a Hong Kong stock company, announced its intention to list on the science and innovation board. The share price of Hong Kong stocks rose sharply, with an increase of more than 9%.
Huahong semiconductor announced that the board of directors of the company approved the preliminary proposal of issuing RMB shares and listing on the science and Innovation Board on the 21st.
According to the plan, all the shares issued by Huahong semiconductor on the science and innovation board are new shares, and the number shall not exceed 25% of the company’s existing total share capital; After deducting the issuance expenses, the raised funds are intended to be used for the business development of the company’s main business and supplement working capital.
What kind of company is Huahong semiconductor? This is one of the “oldest” Fabs in China.
The list of shareholders shows that the major shareholders of Huahong semiconductor include Shanghai Huahong International Co., Ltd. and Xinxin (Hong Kong) Investment Co., Ltd.
According to the official website, Shanghai Huahong Hongli Semiconductor Manufacturing Co., Ltd. (hereinafter referred to as “Huahong Hongli”), a wholly-owned subsidiary of Huahong semiconductor, is newly established and merged by the former Shanghai Huahong NEC Electronics Co., Ltd. (hereinafter referred to as “Huahong NEC”) and Shanghai Hongli Semiconductor Manufacturing Co., Ltd.
Shanghai Huahong Microelectronics Co., Ltd., the predecessor of Huahong NEC, was founded in 1996. Since then, it has established Huahong NEC with NEC in Japan, becoming the main undertaking unit of “909 project”, and is widely known for building China’s first 8-inch wafer manufacturing production line (completed in 1999).
Taking advantage of the development of China’s integrated circuit industry, Huahong semiconductor is also developing rapidly.
At present, Huahong Hongli has three 8-inch wafer factories (Huahong Factory 1, factory 2 and factory 3) in Jinqiao and Zhangjiang, Shanghai, with a monthly production capacity of about 180000 wafers.
In addition, Huahong Hongli, the national integrated circuit industry investment fund (hereinafter referred to as the “big fund”) and Wuxi Xihong Lianxin Investment Co., Ltd. jointly established Huahong semiconductor (Wuxi) Co., Ltd. in Wuxi high tech Industrial Development Zone: the phase I project will build a 12 inch wafer factory with a monthly capacity of 40000 chips (i.e. Huahong No. 7 Factory), which was officially completed in 2019 and entered the production and operation period, Become the leading 12 inch characteristic process line in Chinese mainland, and the world’s first 12 inch power device foundry line.
In addition, Huahong Hongli also has a 12 inch plant, which is currently leased to Shanghai Huali Microelectronics Co., Ltd.
Unlike Semiconductor Manufacturing International Corporation(688981) sprint advanced process technology, Huahong semiconductor has embarked on the road of developing characteristic integrated circuits, focusing on R & D and manufacturing 200mm (or 8 inches) and 300mm (12 inches) wafer semiconductors for professional applications (especially embedded nonvolatile memory and power devices).
Thanks to the growing market demand for storage and power semiconductors, Huahong semiconductor achieved a revenue of 10.784 billion yuan in 2021, a year-on-year increase of 73.46%; The net profit was 1.352 billion yuan, a year-on-year increase of 113.26%.
Looking forward to the business situation in 2022, Huahong semiconductor introduced that the total production capacity of the company reached 65000 pieces / month by the end of 2021 and is expected to reach 94500 pieces / month by the end of 2022, of which the utilization rate of 8-inch production capacity will remain above 110%.
